1/2 Point Commision And.......
My friend the Real Estate investor wants me to find places screen them and present them the qualified ones to him for rehab and sale
For this he will give me 1/2 point commision on the sale of the property
After that if he buys another property from the same person I get 1/4 point
Is that standard?
NG
[ Edited by Niceguy1 on Date 01/12/2005 ]
Nothing is standard but in my opinion that is a generous offer in CA with home values being high.
This is called bird-dogging
I've heard the range of $500-1000 mentioned several times in this forum--and nothing on the repeat purchases.
I dont think know about 1 - 1.5k seems a little low, especially if your going to be driving around looking at alot of diffrent properties. unless hes also paying you by the hour to do that. think about it, you would have to do an awful lot of those just to make enough to start investing yourself. never mind paying for gas expenses, one deal might not even cover that.
get a deal under contract with little or no deposit down. and then market it to other investors including this guy for a reasonable price were they can still make alot on it. this way you might be able to make 10 - 20k and have enough cash to start doing things on your own.
For what its worth, I personally think 1% of the sale price is fair. I guess it depends on how much "screening" you are doing to prequalify the deal for your investor. What are you doing? The more indepth screening you do, the more time (and money) you are saving your investor, so he should be willing to pay. Tell me what you are doing by way of screening.
[ Edited by Deestatham on Date 01/12/2005 ]
[ Edited by Deestatham on Date 01/12/2005 ][ Edited by Deestatham on Date 01/12/2005 ]
I just checked on www.realtor.com and houses are starting at $449,000.
http://www.realtor.com/FindHome/HomeListings.asp?mlsttl=&frm=bymap&pgnum=1&mls=xmls&js=on&target=&ct=Fremont&st=CA&sbint=1&sbls=&sblo=1&lnksrc=SRP-ModSearch&areaid=75516&mnsqft=&fid=so&mnprice=0&mxprice=99999999&mnbed=2&mnbath=1&typ=1&poe=realtor&x=17&y=9
at 0.5% your part would be $2245, and that was just to start. Of course that is at FMV, hopefully that is clost to what his sale price would be.